Tokenlion Blog

Cryptocurrency, Blockchain, and ICO Related News

Tokenlion brings the latest Cryptocurrency, Blockchain, and ICO Related news. Know what is happening in the cryptocurrency world by getting the latest information from various sources daily.

Bank of America Fees are 6000 times more expensive than Bitcoin

By: TokenlionSeptember 20

There are plenty of cryptocurrency critics stating that Bitcoin is too expensive for transactions. Now we have data from Bank of America (BOA). It shows that traditional money transfer cost 6,000 times more in fees than Bitcoin.

Let’s take a $90,000 transfer as an example. It will cost $45 with a bank and 75 cents with Bitcoin.

BoA uses the Fedwire network, a federal reserve’s money transfer network, and it charges them up to 83 cents to process a transaction. On the other hand, according to recent figures, BoA allow themselves to charge their customers up to $45 for the same service.

The fees of Fedwire vary. They depend on the size of the payment and it checks whether the payment is qualified for an “Incentive” fee. It’s described as “transfers that exceed 60% of a customer’s historic benchmark volume.”

So, Fedwire can allow charging as low as $0.032 for a transaction that qualifies as an “incentive” even if it’s worth over $90k.

But the reality is not the same paper-perfect story. BoA charges at least $30 per transaction. This means that their minimum profit margin is 87%. Also, they have imperfect exchange rates for foreign transfers and this increases fees even more.

ICO Tracking

Join Us On Social Media

Let’s keep in touch! Interested in more cryptocurrency related news, ICO reviews, analysis, and tracking? join us on Facebook, Twitter, or Telegram! Become a part of our growing community – let’s make ICOs more transparent!